Investment In Retail Properties Rises In Europe

A quarter-on-quarter increase in the level of investment in European retail real estate markets has been recorded. A report released by Jones Lang LaSalle revealed that investment volumes hit 6.7 billion euros...

A quarter-on-quarter increase in the level of investment in European retail real estate markets has been recorded. A report released by Jones Lang LaSalle revealed that investment volumes hit 6.7 billion euros (GBP 5.8 billion) in the three months from July to September, up from 4.9 billion euros in the previous quarter. This now puts the total amount transacted in the sector so far in 2011 45 per cent higher than the same time a year earlier.

Jones Lang LaSalle noted that shopping centres are by far the most popular option among investors in this sector, accounting for 66 per cent of retail property deals, while the UK and Germany are the most popular markets for those seeking opportunities in this area. Head of Europe, Middle East and Africa capital markets at the firm Jeremy Eddy commented: "Whilst the European recovery remains extremely volatile, the demand for prime real estate assets remains strong." He added that investors have become less reliant on debt markets to finance their deals.

Research published recently by BNP Paribas Real Estate also found that investment volumes in European retail assets increased during the third quarter of the year. According to the organisation, rents in prime locations in major cities are experiencing upward pressure due to demand from international retailers that are keen to take space in high-profile districts. Central London was singled out as the destination seeing the most dramatic rental growth at present.

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